Dual-Clutch Transmission Market

2021 Analysis and Review: Dual-Clutch Transmission Market by Vehicles – Passenger Vehicles and Commercial Vehicles for 2021-2031

Dual-Clutch Transmission Market Snapshot

As per Future Market Insights (FMI) analysis, the global dual-clutch transmission market reached a valuation of approximately US$ 24 Bn in 2020. The market is projected to exhibited healthy growth, expanding at a 6% CAGR through 2021-2031.

Increasing integration of dual-clutch transmission (DCT) in small passenger vehicles will propel sales in the coming years. Rising adoption of hybrid vehicles across the globe will shape the demand outlook positively, enabling expansion at 7.2% in terms of volume between 2021 and 2031.

Key Points Covered in Dual Clutch Transmission Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Dual Clutch Transmission Market and how to Navigate
  • Recommendation on Key Winning Strategies

Dual-Clutch Transmission Market Historic Sales Compared to 2021-2031 Forecast Outlook

Dual-clutch transmission market exhibited stellar growth at 19% CAGR between 2016 and 2020. These systems have been in use for lightweight and passenger car manufacturing for many years. However, the practice is gradually withering away in North America and Europe.

Nonetheless, dual-clutch transmissions (DCT) are gaining traction in developing countries such as China, India, South Korea, and Brazil, owing to demand for higher fuel economy and focus on curbing traffic congestion.

These factors will continue bolstering sales of dual-clutch transmissions systems. FMI projects, the market to exhibit y-o-y growth at 6.3% in 2020-2021.

DCTs offer on-demand pumping features and minimize clutch drags as experienced in conventional automatic transmissions. Additionally, they reduce parasitic losses and use splash lubrication that offers easy gear shift which is ideal for navigating through tough terrains.

While North America and Europe exhibited single-digit CAGR through 2020, market revenue in the Asia Pacific increased at an impressive pace, expanding at around 16.4% CAGR through 2020.

How Will Automotive Industry Growth Impact Dual Clutch Transmission Systems Sales?

The automotive industry is experiencing rapid expansion owing to increasing disposable income and rising population. As per FMI's analysis, growth prospects for the dual-clutch transmission market will remain positive. Passenger cars with DCT segment will exceed a market valuation of US$ 4,933 Mn in 2021. 

Increasing demand for small and medium-sized vehicles in counties such as China and India will create lucrative avenues for manufacturers operating in the dual-clutch transmission market.

Comfort and safety factors largely influence decisions of buying vehicles. With increasing awareness regarding convenience of vehicles equipped with DCT, sales in the market are forecast to increase in the forecast period.

Steered by changing consumer preference, various car manufacturers including Hyundai, Kia and Volkswagen are incorporating technological advances in DCT systems, such as 7-speed and 9-speed hybrid DCTs, which will create opportunities for growth in the coming years.

How will the Market Gain from Increasing Passenger Vehicles Sales?

Dual-clutch transmission systems are known for effectively improving drivers' experiences, which is crucial for new drivers and people living in areas with highly congested and unfavorable tracks.

Additionally, improved acceleration plays a key role in high-performance cars. Traditionally, dual-clutch transmission systems were reserved for high-performance vehicles involved in motorsports. However, the trend has shifted to passenger vehicles due to the exceptional power and speed offered by dual-clutch transmission.

Other advantages of dual-clutch transmission include smooth gear changes, that are perfect for performance driving. These systems eliminate commonly observed shift shock occurrences in manual transmission vehicles, thus gaining importance in the latest models of passenger vehicles.

Vehicles enabled with dual-clutch transmission allow drivers to have more control over driving experience, with improved efficiency, flexibility, smooth transitioning, and fuel-saving options. The factors are effectively boosting market sales.

Growing Emphasis on Fuel Efficiency Propelling Dual Clutch Transmission Sales

In order to abide by regulations regarding emissions control in various countries, automotive manufacturers are focusing on innovations in design and technology that are aimed at reducing carbon footprint and boost fuel efficiency.

International organizations such as Environmental Protection Agency (EPA), National Highway Traffic Safety Association (NHTSA) have imposed stringent regulations on light and heavy-weight vehicles to reduce the cumulative greenhouse gas emissions.

These regulations act as a chief factor that is encouraging numerous OEMs to incorporate dual-clutch transmission systems in lightweight and passenger vehicles, due to the system's ability to reduce emissions and significantly lesser fuel consumption.

What are the factors Hindering Dual Clutch Transmission Market Growth?

In 2020, the unprecedented COVID-19 outbreak caused major setbacks in the dual clutch transmission market growth, due diminished automotive sales and halted production of automotive parts across the globe.

However, with gradual relaxations in lockdown regulations, automotive sales slowly started picking up pace, but dual clutch enabled vehicles still failed to grab consumes’ attention in some countries.

Despite the widely known advantages offered by dual-clutch transmission systems, some consumers have shown negative responses regarding DCT enabled vehicles, which has led to a significant drop in sales.

Increasing demand for electronic vehicles (EV) will also have a negative impact on the market, due to low penetration of dual-clutch transmission systems.

Additionally, lack of awareness and high costs associated with the manufacturing process can potentially restrain the market growth.

Country-wise Insights

What is Driving Dual Clutch Transmission Sales in the U.S.?

Although DCTs offer significant advantages in terms of better driving experience and minimizing harmful emissions, customers have shown unfavorable responses regarding dual-clutch enabled vehicles in the U.S.

However, this challenge served as an opportunity for car manufacturers in the U.S., as it gave a significant rise to research and development in the dual-clutch transmission market, providing beneficial insights to other manufacturers across the world simultaneously.

Leading car manufacturers in the U.S. including Toyota, Nissan, and Subaru are incorporating advanced dual-clutch transmission technologies such as 7,8,9, and 10-speed transmissions in their latest car models. 

With these technological advancements and increasing sales of passenger vehicles in the country, the dual-clutch transmission market is poised to witness steady growth throughout the upcoming decade.

Why Will China Dominate the Dual Clutch Transmission Market?

China is anticipated to showcase stellar growth in the dual-clutch transmission market, being the leading automotive producer in the world. Prevalence of major manufacturers, coupled with increasing demand for small and medium-sized vehicles is burgeoning the market growth.

Additionally, the convenience offered by dual-clutch enabled vehicles makes them an ideal choice for unfavorable terrains and congested roads, which are prevalent in the country. These vehicles are fit for seamless navigation and enhanced control over driving, making them a popular choice in China.

How Will the Dual Clutch Transmissions Market Gain Traction Germany?

In Germany, a majority of vehicles are manual transmission-based, but growing popularity of dual-clutch transmissions due to their easy accessibility is shifting consumers' focus towards dual-clutch enabled vehicles.

The convenience offered by these systems is a major driver in Germany. Prevalence of strict emission laws in the country has also propelled sales of dual-clutch enabled vehicles. However, improved driving experience will remain the chief driver in the market.  

DCTs are also being considered by OEMs for medium-sized vehicles, and the incorporation of latest technologies in the dual-clutch systems will create lucrative opportunities for regional and global players in the market.

How Will the Dual Clutch Transmissions Market Expand in India?

India is anticipated to emerge as a lucrative market due to rising disposable income in the country, which is leading to increasing passenger vehicle sales.

Dual-clutch-enabled vehicles are gaining popularity in the country, owing to their convenience and fuel efficiency. With rising fuel prices in India, consumers are looking for vehicles that are affordable and offer an optimal driving experience with relatively low fuel consumption.

Several manufacturers are capitalizing on this feature offered by dual-clutch transmission systems and are modifying them with added technological advancements, later incorporating these systems in hybrid vehicles.

Prominent car manufacturers in India including Tata Motors, Mahindra & Mahindra, and Maruti Suzuki are launching hybrid dual-clutch enabled car models catering to growing demand for passenger vehicles in the country.

Category-wise Insights

Dry Clutch is Projected to Lead the Product Segment 

FMI’s analysis projects the dominance of dry clutch transmission segment over wet clutch transmission systems throughout the forecast period. The preference for dry clutch is attributable to factors such as superior fuel efficiency and relatively low costs.

Dry clutch offers high performance and efficiency due to the absence of hydraulic equipment which is used in the wet clutch. With increasing development in the system technology, dry clutch segment will witness healthy growth.

Why is Passenger Car Segment Dominating the Market?

Passenger vehicles account for 4 out of 5 sales in the automotive industry. In the dual-clutch transmission market, the dominance of passenger vehicles segment is attributable to their application in passenger cars.

Technological advances in the systems and their wide availability are also boosting the adoption of dual-clutch transmissions in passenger vehicles, thereby boosting the overall market growth. 

Competitive Landscape

As per FMI's analysis, players operating in the dual-clutch transmission market are emphasizing on inorganic strategies such as mergers and acquisitions and strategic collaborations to cast a wider net on the high-growth segments in the market.

Top players operating in the market include BorgWarner Inc., Magna, ZF Friedrichshafen AG and Hyundai Transys.

Recent developments by prominent players include innovations in technology and product development, increased focus on research and development to develop green products that target emission control, and improved accessibility and mobility in vehicles. For instance:

  • In June 2021, BorgWarner and Hyundai Motor Group announced a strategic collaboration for Hyundai’s upcoming A-segment hybrid vehicles range that require top-quality gearboxes and integrated power electronics for optimum fuel efficiency and emission control.
  • In October 2020, Tata Technologies collaborated with GKN Automotive to open a global centre for e-mobility technology development, primarily focusing on product development and engineering capabilities for OEMs.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Vehicle Type, Product Type, Regions

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current dual-clutch transmission market value?

    The dual-clutch transmission market reached a valuation of US$ 24 Bn in 2021.

  • At what rate did the dual-clutch transmission market grow between 2016 and 2020?

    The dual-clutch transmission market expanded at around 19% CAGR between 2016 and 2020.

  • What are the key trends driving dual-clutch transmission sales?

    Rising adoption of hybrid cars and integration of dual-clutch transmission systems in small passenger vehicles are key trends driving sales in the market.

  • Who are the leading players in the dual-clutch transmission market?

    Leading players operating in the dual clutch transmission market are BorgWarner Inc., Magna, ZF Friedrichshafen AG and Hyundai Transys.

  • What will be the demand outlook for  North America dual-clutch transmission market?

    North America’s dual-clutch transmission market is anticipated to experience steady growth, expanding at a 3% CAGR.

  • At what rate will dual-clutch transmission demand rise in Europe?

    The dual-clutch transmission market in Europe is expected to expand at 5% CAGR between 2021 and 2031.

  • Which are the top countries driving the dual-clutch transmission market sales?

    China, India, and Germany are the top counties driving the dual-clutch transmission market sales.

  • What is the current market share of Japan and South Korea in the global dual-clutch transmission market?

    South Korea and Japan will collectively account for 3% of global market share in 2021.

Dual Clutch Transmission Market by Category

By Vehicle Type:

  • Passenger Vehicles
  • Commercial Vehicles

By Product Type:

  • Dry Clutch
  • Wet Clutch

By Region:

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • Asia Pacific excluding Japan
  • Japan
  • Middle East and Africa (MEA)

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